- Yield = 9.97%
- Price-to-book Ratio = 0.847
- Assets per unit = $0.709
- Debt per unit = $0.325 (including current liabilities)
- Gearing = 45.9%
- Secured NAV = $0.384 (118% of trading price)
LMIR has a yield of 9.97% which is one of the highest yielding REIT if not the highest. Moreover, its price-to-book ratio is 0.847 which means we are buying at 15% discount. Gearing is at 45.7% which is actually quite high. However, their secured NAV is at 118% of their trading price which is excellent. But bear in mind that their properties are all in Indonesia.
Recently they have been acquiring assets from their sponsors but gave no indication on when they are going to complete these acquisition, whether it is yield-accretive and how does it enhance our shareholder value. However, it does give us a chance to invest in these properties which they offload. Something which we are unable to do without the REIT vehicle.
Its price has been moving up steadily due to, I believe, the improvement in Indonesian economy and also Rupiah. As I have said before, this is more of an investment in foreign currency than just property so I am glad that Indonesia is doing well. I am vested with 30,000 shares and I hope to put in more.
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